SANDERS SAYS CCDC SHOULD STAY AT HELM OF PLANNING

The city’s downtown redevelopment arm, the Centre City Development Corp., should remain in business and expand its planning and development review to include all other former redevelopment areas, San Diego Mayor Jerry Sanders told a local real estate conference Friday.

But Sanders said the current staff involved in redevelopment — about 75 — is likely to drop 70 percent to 80 percent in coming weeks as the city transitions to a post-redevelopment era.

The cutbacks relate to the Feb. 1 dissolution of about 400 redevelopment agencies statewide, including 17 in San Diego County, as ordered in legislation passed in Sacramento last year.

Previously, the city had three groups overseeing its 14 redevelopment areas — CCDC, the Southeastern Economic Development Corp., both nonprofit entities formed by the city, and the city’s redevelopment department. They received their funds from property taxes raised within each project’s boundaries. Those funds will no longer be available for new development and infrastructure efforts, and thus a cutback in staffing is inevitable.

“I think it’s best to contract that (planning and future development effort) out to a nonprofit,” Sanders told the 16th annual real estate conference, sponsored by the University of San Diego’s Burnham-Moores Center for Real Estate. “We would like CCDC to remain to process permits and planning, not only downtown but in the other redevelopment areas, because they are so efficient, know what they are doing, and the building industry knows how to work with them. They’re much quicker than the rest of the city.”

This was the first time the mayor has outlined in detail what he has in mind for the post-redevelopment setup at City Hall. But, as in the past, he decried the state’s action to scuttle the program, which Gov. Jerry Brown backed as a budget-saving measure but which mayors and local officials condemned because they are losing guaranteed funds for revitalization.

In line with that reorganization, CCDC took steps this week to replace the funds formerly used to process downtown permits and update plans.

The CCDC board approved 23 fees Wednesday that need City Council approval; they would go into effect around July 1. Included would be a $61,715 application fee for a big project downtown, $2,226 to extend an approved minor building permit, or $423 for a temporary use permit to set up a Comic-Con exhibitor display at a parking lot.

Since 1992, developers have paid no such fees. CCDC relied on downtown property taxes to cover planning and design review. Builders have always paid regular building permit fees and, since 2005, development impact fees for parks and fire stations.

“We think we have a very efficient and certain review process downtown that does serve as an incentive to develop downtown,” said Brad Richter, CCDC assistant vice president for planning, “and therefore we are recommending we keep it intact.”

The CCDC board voted unanimously in favor with the expectation that the fees will generate $1 million or more this year to support its planning and design review staff. That’s 12.2 percent of the corporation’s overall administrative budget this year of $8.2 million.

Contrary to other fees raised by the city in the past, nobody in the building industry objected to CCDC’s plan.

Matt Adams, speaking for the San Diego County Building Industry Association, said his board has not yet taken a position on the fees, but he did not speak against them.

“The industry is steadfast in its support of the continuation of CCDC and the important work you do, and more importantly, the efficient work you do,” Adams said Wednesday.

CCDC is recommending flat fees rather than the sliding scale, tied to staff time spent, at the city’s Development Services Department that handles planning permitting outside downtown. Richter said CCDC can process applications quicker and cheaper. For example, he said, a sidewalk cafe review costs about $1,059 and takes up to six weeks to complete, compared with $5,000 and four months outside downtown.